Wenger told reporters at Arsenal's training ground on Friday: "He's a top-class international player.
"Dugarry can run at people, and create the spark. He can give you the final ball and he can score as well. He's very quick and in my opinion still 100 percent physically.
"He is a proud guy and I don't think he needs money. He has made quite a lot. He's played in Milan and Barcelona and usually they are not the poorest when they come out of there.
"He will want to show that he is successful," added the Arsenal boss.
"Dugarry is not afraid of the physical side of the game. He's prepared for that because he likes a tough game, and he's strong in the air.
"He looks to be built for the premier league."
Dugarry, along with other new signings Ferdinand Coly, Jamie Clapham and Stephen Clemence, is expected to make his Blues debut in the televised clash with the Gunners on Sunday afternoon.